Home / PRODUCTS & SERVICES / Generator business sees huge market potential

Dinesh Vyawahare, Senior General Manager, Marketing, KOEL

India’s thrust on achieving higher economic growth rate has intensified construction activities all across the country. This has also created huge demand for power supply. According to some market research, there is a demand-supply gap of about 17% in power generation. This has thrown open huge market opportunities for the power backup providing companies. The power backup market in India is growing at an annual rate of 15-20%, varying within the three different segments – generators, UPS and inverters. Major players like Kirloskar Oil Engines Ltd (KOEL), Mahindra-Powerol, Cummins India, Greaves Cotton, Ashok Leyland, Eicher, Caterpillar, MTU and few other imported brands are seeing huge market potential to grow in India.
Dinesh Vyawahare, Senior General Manager, Marketing, KOEL, said: “India’s power market is growing faster than most other countries. With an installed generation capacity of 147 GW, generation of more than 600 billion kWh, and a transmission and distribution network of more than 6.3

Advertisement

COMMENT   Can any body give the latest information on Genset Industry. If Yes Plz mail me at vikasmendi@gmail.com   9 Comments Read more comments »

million circuit kms, India is now the fifth largest power market in the world. The per capita electricity consumption in the country is around 665 units which is envisaged to increase to 1,000 units by 2011-12.”
He said good opportunity continues to exist in power sector in India due to growing gap between demand and supply. The demand for power is typically driven by sectors such as Telecom, Commercial construction, IT, ITES, Retail, etc.
KOEL is into manufacturing air cooled and liquid engines/ diesel Gensets with power output covering from 5kVA to 625kVA and 1800kVA to 6300 kVA.
“Kirloskar engines are known for lower operating cost, higher reliability and longer life. We manufacture engines that are not only emission complaint and eco-friendly, but are also manufactured in an environment friendly way. KOEL engines and diesel generator sets are certified for the stringent noise and exhaust emission norms made mandatory by Central Pollution Control Board,” Vyawahare added.
He said the domestic Genset market (inclusive of Telecom sector) is about two lakh per annum in the range from 10kVA to 2000kVA. “KOEL is a major player in India with about 27% market share. We foresee our market share to grow up to 35% in next couple of years,” he added.
Diversifying into the power generation sector, Mahindra & Mahindra, another player to have its strong presence, had launched its Mahindra Powerol brand in the India market in 2001. The company realised huge potential in the segment and decided to start manufacturing and supplying complete DG sets under the new brand. This has helped them to grow their business to Rs1010 crore in 2009 from its earlier revenue of Rs51 crore in 2005. The company manufactures engines which can power Diesel generating sets ranging from 5kVA to 320kVA.
“In Telecom segment we have 42% market share whereas we hold 21% market share in retail segment. In volume term, we had sold 52,000 DG sets in financial year 2008-09. Besides Telecom, DG sets are also powering customers from a diverse cross-section of industries such as banks, building & construction, public sector units, hospitals, hotels, homes and manufacturing units,” the company said.
Mahindra had also launched B100 bio diesel generator sets for the Indian market. The company said Mahindra Powerol engines and diesel generator sets are certified for the stringent noise and exhaust emission norms made mandatory by the Central Pollution Control Board, India.
According to industry estimates, the DG set market in India (15-2000 kVA range) was estimated at Rs60,253 million with 147,040 units in financial year 2006-07. That is now projected to grow to Rs12,2230 million with sales of 205,450 units.

---